Statoil is still trying to find a solution, which will allow the company to participate in the Shtokman project. However, both technical and commercial challenges must be solved before Statoil makes a final investment decision.
In a press release, Statoil says it was not possible to arrive at a solution for the Shtokman development within the framework of the Shtokman Development AG (SDAG) joint venture, in which Gazprom, Total and Statoil are joint owners. Statoil has therefore returned its shares in SDAG to Gazprom after the current agreement expired on 30 June.
At the same time, Statoil’s chief executive Helge Lund and senior vice president for the Europe and Asia business cluster Torgeir Kydland have left the board of the joint venture.
Statoil says talks are continuing with Gazprom to try to find a commercial solution which will enable Statoil to participate in the Shtokman development.
“We need a commercial concept to justify the large investment,” says Kydland.
“We have a broad and strong portfolio of projects worldwide competing for investments, and Shtokman is competing on the same level as other projects.”
The investment decision has been postponed several times based on framework conditions, high investment costs and uncertain profitability. At the same time, the energy realities have changed. Large natural gas deposits, especially onshore USA, have impacted the gas market fundamentally.
“We have worked with Russia for several decades,” says Kydland.
“Our cooperation with the Russian authorities is good, and in May we signed a cooperation agreement with the Russian company Rosneft. We have come to Russia to stay, and if it is possible to find a common commercial solution for Shtokman we are still interested in joining the project.”
Earlier this year Statoil repatriated most the staff who were deployed to work for SDAG as part of reducing its current joint venture costs.
“The Shtokman field consists of large proven natural gas resources, and field production is possible if we find the right solutions,” says Kydland.
(NRK|Press release)
Russian Gazprom and Norwegian Statoil, partners in the development of the Shtokman Gas Field in the Barents Sea are to expand cooperation through a sci-tech cooperation program.
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Gazprom Management Committee Chairman Alexei Miller and StatoilHydro President and CEO Helge Lund (photo) have signed a Memorandum of understanding, stipulating that the parties will cooperate in northern regions of Russia and Norway...
Shtokman Development AG has awarded a consortium comprising Aker Solutions, Technip France and SBM Offshore a contract for the Floating Production Unit (FPU) to be used in the Barents Sea...
Norway's energy producer StatoilHydro continues to develop a viable offshore suppliers industry in north-west Russia, also in training experts – and the efforts are making an impact...
StatoilHydro has signed a frame agreement with Russia's Gazprom to become partner in the development of the giant Shtokman gas field in the Barents Sea. The agreement gives StatoilHydro a 24% equity interest in Shtokman Development Company where Gazprom (51%) and French Total (25%) are the two other partners. ..
Statoil has made a note of the fact that Russian Gazprom has chosen French Total as its first foreign partner for the development of the huge Shtokman gas field, but says that talks with Gazprom will continue...
The Russian gas concern Gazprom and Norway's Statoil have started talks on the development of the world's largest gas field, the Shtokman Field in the Barents Sea. Statoil wants to use new technology from the Norwegian Snoehvit Field in the development....
Norway's Statoil and Hydro will have to wait till the end of the year before they will know whether or not they will be taking part in the development of the giant Russian gas field Shtokman in the Barents Sea...
Leaders of the Russian company OAO Gazprom, of Russia's OAO NK Rosneft and Helge Lund, President and of Statoil ASA (Norway) have signed a Memorandum of Understanding, which provides for conducting 6 months joint studies of several projects, aiming at cooperation between Russia and Norway in the Barents Sea.
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Russia wants to strengthen the cooperation on utilizing its oil and gas resources. Later this month, Oil and Energy Minister Einar Steensnaes will go to Moscow at the invitation of his Russian counterpart, to continue the talks which began during Russian President Putin's visit to Oslo....
Prime Minister Jens Stoltenberg is pleased about the HydroStatoil - Shtockman agreement. He was informed of the agreement by Russia's President Vladimir Putin himself, in a telephone conversation...
Norwegian Statoil may be given a 10 per cent share in the development of the large Russian gas field Shtockman in the Barents Sea, according to sources in the the Russian company Gazprom, quoted by the financial newspaper Vedomosti. (Photo: Hydro CEO Eivind Reiten)..
Oil companies will be investing at least NOK 140 billion in Northern Norway and Russia's northwestern regions in the next few years, according to an overview from the Euro-Arctic Petroleum Association. The oil and gas sector will have an increasing importance for trade and industry in Northern Norway.
(Drawing: The Snoehvit Field)..
